Groundhog Day and Predictions for the Spring Real Estate Market

The Groundhog Day event occurs in a small town in central Pennsylvania each year on February 2nd. Punxsutawney Phil predictions of whether the weather will bring an early spring or whether there will be another 6 weeks of winter are broadcastes across countless media platforms. In 2018, it was the latter. Whether Phil sees his shadow or not often marks the spring real estate market kick off.

In those markets that experience winter months of snow and/or cold temperatures, people often exhibit cabin fever and are ready to get out and about and tour homes as soon as there is a sign of spring. Realtors predict an early spring market by several indicators, the strongest of which is attendance of prospective buyers at Sunday open houses. Thus, it is helpful to track the actual number of people that visit. If it is trending up, then that is a good indicator. All signs for 2018 to date are showing phenomenal open house activity for homes priced correct and in good condition.

By February there is often a significant increase in the number of Sellers who are preparing their homes for the market. Many have been waiting on the sidelines for springtime to appear. Thus, another indicator to watch is the rate that homes come onto the active market or in coming soon status. If it is a faster clip than demand is absorbing them, then that is a sign that supply is building up.

Sellers may want to consider the potential advantage of being early on the market. Known as "first-mover advantage," in this way they may beat out competition.

The message to Sellers: No need to sit out the market any longer, spring has begun in the Northern Virginia real estate market. It is important to work with a Realtor that is experienced and knowledgeable on how to navigate the rapidly changing market conditions.

The message to Purchasers: The lack of good homes to buy at market prices means that this is not a time to do it by yourself. It is even more critical to be represented by a professional Realtor that you can trust.
Springtime always follos winter, thank goodness! Even though the Groundhog predicted a longer winter season in 2018, either way the spring market will come.